Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality.

- Identifying the main elements of a product, service or project
- Analysing the functions of those elements
- Developing alternative solutions for delivering those functions
- Assessing the alternative solutions
- Allocating costs to the alternative solutions
- Developing in more detail the alternatives with the highest likelihood of success